NEW PCC WORKSHOP SHIPPING SERVICES PRICE CHANGE. Shipping Services Price Change Effective Jan. 26, 2014

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1 P PRIORITY MAIL US POSTAGE PAID PRIORITY MAIL 2-DAY NEW PCC WORKSHOP SHIPPING SERVICES PRICE CHANGE USPS TRACKING # evs C001 Presented by: Mario Roman (Northeast Shipping Executive) Ray Padilla (Field Sales Representative) Smithtown, NY U.S. Postal Service Jan. 15,

2 Shipping Services Domestic products Priority Mail Express Priority Mail Parcel Select Parcel Return Service First-Class Package Service Standard Post Other Competitive Offerings Shipping Services Price Change International products Global Express Guaranteed (GXG ) Priority Mail Express International Priority Mail International First-Class Package International Service International Priority Airmail (IPA ) International Surface Air Lift (ISAL ) Airmail M-Bag Competitive Extra Services 2

3 Domestic Shipping Services Product Overall Average Increase Priority Mail Express 3.0% Priority Mail 0.0% Parcel Select 9.2% Parcel Return Service 3.0% First-Class Package Service 5.0% Standard Post 5.2% New! 10:30 a.m. delivery w/ $5 fee 3

4 Priority Mail Express new Zone 9 For Freely Associated States (FAS) Palau, Micronesia, Marshall Islands Separate zone to align price with cost of transportation 4

5 Priority Mail Express Commercial Base Prices Prices increase on average 2.9% 1/2 pound price from $13.09 Flat Rate Envelope price $18.11 Flat Rate Box $

6 Priority Mail Express Commercial Plus Prices Prices increase on average 0.6% 1/2 pound price from $11.16 Flat Rate Envelope price $14.85 Flat Rate Box $

7 Priority Mail Commercial Base Prices Prices increase on average 0.0% Average 11.0% lower than Retail prices Flat Rate Envelope* $5.05 Legal Flat Rate Envelope $5.25 Padded Flat Rate Envelope $5.70 Flat Rate Box prices start at: $5.25 * Includes Regular Flat Rate Envelope, Small Flat Rate Envelope, Window Flat Rate Envelope and Gift Card Flat Rate Envelope. 7

8 Priority Mail Commercial Base Prices Regional Rate Box Approved payment methods required Price based on box and zone Regional Rate Box A 15-pound maximum, starts at $5.32 Regional Rate Box B 20-pound maximum, starts at $6.16 Regional Rate Box C 25-pound maximum, starts at $15.25 Additional $0.75 fee when deposited at Retail Commercial Plus mailers also qualify 8

9 Priority Mail Commercial Plus Prices & Cubic Prices increase on average 0.0% New! Lower account volume threshold for Commercial Plus & Cubic 50,000 pieces yearly. Commercial Plus Cubic Prices-Cubic Soft Pack Priority Mail Open and Distribute Only tray boxes entered at Priority Mail Commercial Plus prices are charged based on the tray box and zone to which sent rather than weight and zone 9

10 Parcel Select Destination Entry DDU DSCF DNDC Overall Average Increase 9.2% Non-destination Entry Parcel Select Lightweight Average Increase 8.0% 5.6% 5.1% 5.9% 10.1% 10

11 Parcel Return Service Shipping Services Price Change Overall Average Increase 3.0% Average Increase by Category Return Network Distribution Center (RNDC) 0.0% Return Sectional Center Facility (RSCF) 0.0% Return Delivery Unit (RDU) 5.7% PRS Full Network 0.0% 11

12 First-Class Package Service Overall average increase is 5.0% Shipping Services Price Change Commercial Base and Commercial Plus pricing Free USPS Tracking and confirmation of delivery with Intelligent Mail package barcode (IMpb) 12

13 Standard Post Shipping Services Price Change Overall average price increase is 5.2% Free USPS Tracking New! Zones 1-4 upgraded to Priority Mail* * except for HAZMAT and live animals A Retail product with payment by stamps or meter; deposited at Retail counter or Package Pickup 13

14 Other Competitive Offerings Premium Forwarding Service Shipping Services Price Change Weekly reshipment fee remains $17.00 Enrollment fee increases, with different fees for retail and online: Retail $17.00, Online $16.00 Post Office Boxes Average price increase is 3.5% 14

15 Other Competitive Offerings Shipping Services Price Change Adult Signature Service Adult Signature Required increases to $5.20 Adult Signature Restricted Delivery increases to $5.45 Pickup on Demand Daily fee remains $

16 International Shipping Services Global Express Guaranteed (GXG) Priority Mail Express International Priority Mail International First-Class Package International Service International Priority Airmail (IPA) International Surface Air Lift (ISAL) Direct Sacks of Printed Matter to One Addressee (Airmail M-bags) International Extra Services 16

17 Global Express Guaranteed (GXG) Average Overall Increase Commercial Base Price 3.0% Lower than Retail by up to 13% Commercial Plus pricing Annual revenue commitment required Prices lower than Retail by up to 20% Global Expedited Package Services Non- Published Rates (GEPS NPR) contracts 17

18 Priority Mail Express International Average Overall Increase Commercial Base Price 1.3% Lower than Retail by up to 11% Flat Rate Box $66.95 to Canada / $84.95 to rest of the world Flat Rate Envelope $35.95 to Canada/ $46.50 to rest of the world Commercial Plus pricing Prices lower than Retail by up to 20% GEPS agreements 18

19 Priority Mail International Average Overall Increase Commercial Base Price 1.1% Lower than Retail by up to 13% Flat Rate Envelope and Small Flat Rate Box Canada $20.55/ rest of world $24.75 Medium Flat Rate Box Canada $42.25/ rest of world $61.75 Large Flat Rate Box Canada $55.75/ rest of world $80.50 Commercial Plus pricing -- Prices lower than Retail by up to 19% E-USPS DELCON INTL available to 12 more countries GEPS agreements 19

20 First-Class Package International Service Average Overall Increase Commercial Base Price 0.8% Lower than Retail by up to 14% Commercial Plus pricing Prices lower than Retail by up to 19% E-USPS DELCON INTL available to 12 more countries Eligible for Package Pickup or Pickup On Demand service 20

21 Other International Mail Changes Product Average Overall Increase Airmail M-Bag 2.9% International Priority Airmail (IPA) -2.5% International Surface Air Lift (ISAL) -2.9% Not all IPA and ISAL mail flown to destination country Number of price groups increases to 20 Price groups 1-14 shape-based pricing Separate containers for each shape (post cards & letters; flats; packages) Weight limits for flat-size and package-size items change Minimum weight for direct country price tier decreases Permanently suspend service to Cuba, Iran, North Korea, Sudan, Syria 21

22 Resources Postal Explorer pe.usps.com Current and new prices downloadable price files Federal Register notices link to the Postal Bulletin Domestic Mail Manual (DMM ) and International Mail Manual (IMM ) DMM Advisory posted on Postal Explorer Also special updates. Subscribe via dmmadvisory@usps.com 22

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24 United States Postal Service Mario Roman / Ray Padilla